Inion Oy Share Discussion Threads

[stewjames] 02/7/2001 15:02

Of course they have liabilities.

The business is loss making. That's enough of a liability in itself to justify them 'only' paying the cash balance. And I think you're being somewhat optimistic saying they can cover this loss with the interest. It's not so much a leakage of capital as an outright haemorrhage - around 15M/year cash outflow from operating activities. And even assuming they could perform a miracle and patch up this outflow, that's going to be a costly exercise in itself with restructuring costs.

Frankly, I think you're lucky they're paying a premium to the cash balance at all.

[bobsims] 02/7/2001 14:56

Yes, Stew, I accept that.

But beyond operating costs, I am not aware that iii HAVE any liabilities ?

They receive income from people like me (£150 p.a), some advertising revenue and some commission on sales of financial "products". That does not offset their operating costs - but it could with a little better organisation and a change in the "culture".

iii currently have 120 employees - whilst ADVFN manage to run their show with 21 people - AND manage to find time to contribute to their own bb's.

I don't know, but I would not have thought that the cost of the market data feeds would be much different for either of them - but I have the impression that iii spend a lot on software ?

There is certainly leakage on the capital, but with better organisation the interest on £50m should be able to cover operating costs when added to the revenue.

[stewjames] 02/7/2001 14:49

The bidder has to take on the liabilities as well as the cash.

To date, IIN has not shown any evidence the business should receive a positive valuation.

[bobsims] 02/7/2001 14:43

Another group of long suffering shareholders about to join Redstone holders in being skillfully parted from their money, are Interactive Investor shareholders.

AFX news today says that the cash offer at a slight premium to cash in the bank would return about 28p per share.

In other words, AMP are going to help themselves to our cash - about £50 million - paying NOTHING for the company and business, which they value at zero.

To put it another way, they are buying our cash and getting our company for nothing.

So, yes, as usual, the shareholder is being relieved of his cash in return for nothing whatsoever.

Redstone shareholders have formed an action group to prevent a similar rip off - and there may be a case for iii shareholders to do the same if we just refuse to be plucked like turkies. Again.

If enough shareholders accept an offer in the region of 28-30p the rest of us will eventually just be told we have to hand over our shares - like it or not.

Anybody got a different view / agree / suggest action ?

[stewjames] 02/7/2001 14:38

Bob, any bidder has to take on the liabilities as well as the cashpile.

[bobsims] 02/7/2001 14:30

Er..on second thoughts...I have had another look at this takeover - and it don't look too good.

AFX news today says that the cash offer at a slight premium to cash in the bank would return about 28p per share.

In other words, AMP are going to help themselves to our cash - paying NOTHING for the company and business which they value at zero.

To put it another way, they are buying our cash and getting our company for nothing.

So, yes, as usual, the shareholder is being relieved of his cash in return for nothing whatsoever.

Redstone shareholders have formed an action group to prevent a similar rip off - and there may be a case for iii shareholders to do the same if we just refuse to be plucked like turkies. Again.

Any opinions ?

[bobsims] 02/7/2001 10:37

Top marks, Aquila !

[bobsims] 01/7/2001 17:07

Aquila - Oh good !

These days it seems to be anybody's guess what effect good news will have on a share price - and even what is "good news" !

Reverse take overs, for example, seem to invariably see a price drop !

It would be nice, just for once, for a price to behave itself as expected.

[bobsims] 01/7/2001 12:09

FT reports that Australian insurer AMP is making an offer for iii at above the cash price.

Any opinions on how this might effect the price ?

[aquila] 01/7/2001 11:07

bobsims - errr, it'll go up.....

[aquila] 20/5/2001 10:07

10:54, Tue 15 May 2001
Interactive Investor traffic down as talks continue
Financial website Interactive Investor International (iii) has lost almost two-thirds of its site traffic and almost half of its visitors over the past year.

iii effectively put itself up for sale last month and said today it is continuing talks with a number of parties to find a strategic partner 'which may or may not lead to [a] sale'.

Announcing its interim results today, the company revealed that page impressions – the most widely used gauge of a site's traffic – stood at 36.09 million in March compared with 93.5 million a year earlier while visits to the site fell to 3.59 million from 6.28 million.

Things are at least improving at the bottom line – losses for the six months to March fell to £6.36 million from £9.63 million with the second quarter deficit £2.32 million compared with £4.03 million in the first quarter. Nonetheless, iii has now racked up £33 million of losses over the past 30 months.

Advertising income in the latest quarter showed a healthy 66% jump from a year earlier to £1.28 million in the second quarter while transaction revenues were sharply lower as the IPO boom of early 2000 vanished.

But iii admitted life is still tough and it sees advertising revenues coming under pressure in the second half now that a disappointing season for ISA sales has ended and advertisers review online marketing budgets.

The shares, as high as 475p last March after the company's own spectacular IPO in London and on Nasdaq, were down 0.5p to 23.5p. That's well below the company's cash resources of £51 million or 31p a share.

[aquila] 18/5/2001 21:40

energyi - ...interesting t trade before the bell yesterday.... regards, A.

[aquila] 18/5/2001 21:11

Hotei, now there's a thought ;)

kobarclay, are you still short ?

regards, A.

[hotei] 16/5/2001 11:46

Aquila, you wouldn't be talking about Advfn buying the E*Trade that has a market cap of $2.87B and 3,800 employees, would you ?

[kobarclay] 16/5/2001 11:26

I'm short of this stock, will hold position until results are announced tomorrow. Looking at the chart, 1st resistance stands at about £10

[aquila] 16/5/2001 00:04

bpoole - who knows? As , I just said on Etrade, maybe Advfn will buy etrade, maybe etrade will buy Advfn, all I know is that the marketplace is too crowded and that advfn have a good service level and business model.
yours with a file on 'em all , A ;)

[bpoole] 15/5/2001 11:42

Will AFN take over iii?
As I said a few months back there will be a lot mergers among the financial sites (the ones that don't go bust that is)and there will be no free ones. The ones that are left will make good profits.

[aquila] 15/5/2001 11:20

Interactive Investor in ongoing talks on strategic partnership/sale of co....

Results have knocked .5p off...obviously much hope of a buyer......

regards, A.

[aquila] 14/5/2001 17:19

bobsims, thanks, you're right they are "For Sale" and it's been suggested they'll go at a small disc to cash. I'm keeping clear until the chart tells me something, regartds,A/

[aquila] 14/5/2001 16:33

adam, oi! lol, ;)
There all going to be part of the same company anyway soon by the looks of it..so are you short iin?
;)
A.

[adam45] 14/5/2001 16:29

I tolf you this BB was no good.

I'd stick with E*TRADE for the time being if I were you ;-)

[aquila] 14/5/2001 16:25

I guess not.